Constitutional Court Rules That Statutory Interest Does Not Apply To Non-contractual Obligations

With its decision of 22 July 2025 and published in the Official Gazette on 1 December 2025 (E. 2024/24, K. 2025/164), the Constitutional Court ruled that the statutory interest rate set out in Article 1 of Law No 3095 on Legal Interest and Default Interest (the "Law") is unconstitutional in respect of "obligations not arising from a contract."

The Constitutional Court issued this decision following a request by Kahramanmaraş Third Administrative Court in connection with a lawsuit seeking compensation for damage arising from immovable property destroyed in an earthquake. The local court argued that the statutory interest rate violated the right to property, which is protected under Article 35 of the Constitution.